Perseus Sees Higher Output as Edikan Returns to Normal

By Soraya Permatasari -
Jan 24, 2013

Perseus Mining Ltd. (PRU), an Australian
gold producer with operations in Ghana and the Ivory Coast,
expects to boost output next fiscal year as it accelerates
expansion and production returns to normal at its Edikan mine.

Annual production may increase to more than the 265,000
ounces estimated for the current fiscal year ending June 30,
Chief Financial Officer Jeff Quartermaine, who will replace Mark Calderwood as chief executive officer next month, said yesterday
in a phone interview from Perth. The company produced 137,297
ounces of gold in the year ended June 30, 2012.

“We’re looking at ways to produce even more gold than what
we have previously stated” by optimizing the Edikan mine in
Ghana, said Quartermaine. More detailed guidance will be given
after an evaluation in the next few months, he said.

Gold producers are expanding mines and boosting output to
cope with rising costs and benefit from prices that have
increased for 12 consecutive years. Spot gold prices gained 7
percent last year as Asian demand rose and central banks boosted
purchases.

Perseus shares fell to their lowest in more than 2 1/2
years on Jan. 22 after production dropped 3 percent in the last
quarter due to several equipment failures at Edikan. The problem
is being rectified and it expects to resume normal production in
the June quarter, said Quartermaine. The stock fell 0.5 percent
to A$1.925 in Sydney trading today.

Perseus also expects to start the suspended Sissingue
project in Ivory Coast by the middle of this year once the
government clarifies the changes in its mining policy, he said.

Over the longer term, Perseus intends to have a third
project that would add at least 150,000 ounces of new capacity a
year, he said.

“In an ideal world, what we would like to do is in 2015 or
2016 be able to add an income stream, so that’s a third project
or operation,” said Quartermaine. “What we are unlikely to do
is to do an M&A activity with an existing producer.”